OTCC has opened public hearing for amendments to franchise guideline

OTCC has opened public hearing for amendments to franchise guideline

The OTCC has opened the public hearing for the draft amendment to the guideline on unfair business practices in franchise business. The amendments proposed relate to the right of first refusal of the franchisees in the event where the franchisor wishes to open a new store in the same locality as the location of the franchisee’s store.

The draft amendment proposes to extend this right of first refusal obligation to the situation where the franchisor wishes to appoint another franchisee to open a new store in the same locality as the location of the franchisee’s store, and the franchisor will have to take into consideration the terms and conditions under the franchise agreement and provide reasonable time for the franchisee to consider and respond.

The draft amendment is subject to public hearing until 27 June 2020.

OTCC has opened public hearing for market dominance threshold

The OTCC has opened the public hearing for the draft market dominance threshold. This is in light of the Trade Competition Act B.E. 2560 (2017) which requires the Trade Competition Commission to review the market dominance threshold every three years. The draft new threshold follows the current threshold in place in all respects (with certain adjustments for clarity purpose), which considers both market share and sales turnover of business operators, whereby a business operator will be considered holding dominant position in the following situations:

  • It has a market share of 50 percent or more, and sales of Baht one billion or more in the previous year.
  • It is among top three business operators with a combined market share of 75 percent or more, and sales of Baht one billion or more in the previous year. All three business operators will be classified as dominant business operators, unless one or more individually had a market share of less than 10 percent or sales of less than Baht one billion in the previous year.

The draft amendment is subject to public hearing until 27 June 2020.

 

 

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